November 14, 2021

2021 – 11/09 – Feeling generous at year end? Strategies for donating to charity or gifting to loved ones

Planning to donate to charity this year? Normally, if you take the standard deduction and don’t itemize, you can’t claim a deduction for charitable gifts. But for 2021, you’re allowed to claim a limited deduction for cash contributions made to qualifying charities. For cash donations made this year, you can deduct up to $300 ($600 for married joint filers). What if you want to give gifts of investments? Don’t give away stock in taxable accounts that is currently worth less than what you paid for it. Instead, sell the shares and claim the loss on your tax return. Then, give the proceeds from the sale to charity. Plus, if you itemize, you can claim a full tax-saving charitable deduction.